Fidelity Multi Manager Growth / Income funds

GeoH_2

Hi

I have a regular investment and my IFA has advised on the following funds and I have to date paid in £14k @ £2k per month

Fidelity Multi Manager Growth Portfolio (Acc) @ £1.5k per month
Fidelity Multi Manager Income Portfolio (Inc) @ £0.5k per month

My question is? are these funds any good.
Also considering I informed him that my acceptable risk level was med – high are these the correct fund for my acceptable risk level.

Also are the charges not considerably higher because it is multi managed funds.


George

dunstonh

Get a new IFA. Whilst the funds themselves are not actually bad. The fact multi-manager has been chosen for that amount suggests that he/she hasnt got the investment skills to give you proper investment advice.

The advice isnt bad. Its just limited. The sort of advice you get from an IFA that spends most of their time doing mortgages and the odd investment. You need an investment specialist IFA. A bit like saying a doctor is a doctor. However, you wouldnt go to a GP for brain surgery.

si1503

I too find it quite suprising that he is advising multi-manager funds, when surely he should have the knowledge and skills to be able to recommend individual investment funds, which have the potential to outperform. Certainly based on your attitude to risk, you could construct a portfolio with a lot more potential.

As above, probably best to find an IFA specialising in investment, if that is the advice you are after.

GeoH_2

Thanks for the advice.

Yet again the favourite question comes up?
How do you get a good advisor???????????.
My present advisor I found on Unbiased.com
He specialises in investments of all sorts according to his details and web pages etc.
He has every letter you can think of after his name and the certificates on the walls.
He has had advice articles in local papers?
He has a reasonable size of premises with several colleagues/employees.
So what are you supposed to do to get someone that can give you good advice?

I actually feel comfortable with him also but I did have a doubt abiout the 2 investments he has me in.

Will drop him an e-mail to see his response

George

kedj

GeoH wrote:

Yet again the favourite question comes up?
How do you get a good advisor???????????.

Don't know an easy answer on that one. But I think it helps to do your own research to validate the advice that you have been given.

Try :-
https://www.citywire.co.uk (which rates individual fund managers)
https://www.funds-sp.com (Standard & Poor's website, that give the A,AA & AAA ratings). You need to register - but there's a free option.

Or have a look at some of the online advisors, for a 2nd opinion on your funds. I browse https://www.h-l.co.uk and https://www.bestinvest.co.uk.

I'd agree with the other comments though - that you wouldnt expect the multi-manager option, but that your advisor should pick a portfolio of funds for you. Also when you are satisified, ensure your choices are reviewed at least annually.

dunstonh

one possible reason for MM funds is that the amount being invested was too low for the adviser in question. Many advisers will automatically use MM funds on small contributions. Different advisers will have different views on what is small. Your contribution isnt profitable for most advisers in the short term although it is in the medium/long term. I would be happy to do it but I know other NMA IFAs that wouldnt or would follow the MM approach. Old model wouldnt go near it unless they have nothing better to do.

EdInvestor

There is IMHO no point in paying for this kind on non-advice when you can easily pick a few decent funds yourself if you know where to look, eg on the links above.

Just as a general guide to risk

High risk funds are

Commodities
Small company funds
Single country funds
Other foreign funds (due to exchange rate risk)
Some Special Situations funds with many small companies in them
Hedge funds

Medium-high risk is

Most mainstream growth funds
Most index trackers

Medium - low risk is

Most mainstream Equity Income funds
Equity and bond mixed funds

I'm sure you can do better yourself after a bit of study.

Look at the top 10 funds in your chosen sectors here, for a start:

https://www.citywire.co.uk/Funds/Home.aspx

GeoH_2

Thanks for the advice to date.

I understand what you mean with regards the regular savings amount of £2k per month not being a great amount.
But I will also be investing around an additional £25- 30k+ in lump sums a year between my wife and myself.
This would mean a total in excess of around £50k+ a year.
I have also already consolidated and transferred £150k into my account from existing investments. So he is also get % of these funds as well.

So I would think that I should get a better service than what it seems I am getting.

As you can imagine as far as i am concerned it will be a considerable amount over the time

kedj

I'm surprised that £2k per month is considered low. My regular investments are much much lower than that... so I'm glad I dont go through an IFA!
I agree with EdInvestor - you are paying for non-advice and it is a rip-off. If all that is being recommended is a MM fund, you might as well be investing direct with a fund supermarket or one of the discount brokers and saving on the commission. Having said that, you have quite a substantial amount to invest (IMO) and in that I position I might be more inclined to use an IFA. Hope you find someone who values your custom and is prepared to dedicate more time to planning your investments properly.

dunstonh

I'm surprised that £2k per month is considered low. My regular investments are much much lower than that... so I'm glad I dont go through an IFA!

Its not low in monetary value but low in commercial value for old model basis advisers. That said, this particular IFA is being very short sighted as from small acorns....... Dont think that we all feel the same. This type of transaction is good value for new model basis advisers.

So I would think that I should get a better service than what it seems I am getting.

I totally agree. Remember, its a service industry as well so if you dont get the service you want, find someone that will give it to you.


edit:

I just turned the page in a financial paper I was reading and there was an article in there from Fidelity MM saying that advisers should be using MM funds because the fund choice is put to a higher level. Obviously Fidelity MM have a vested interest in that but there is some merit in what it is saying. If an investment adviser is low skilled and just picks funds by looking at the top 10 on citywire then that is random and could do all right but could fall foul. They would be better off using MM funds. Ideally, you want an adviser that risk profiles you (more than pick a number between 1 and 5 and thats your risk) and then sector allocates your portfolio to match that risk.

A second note is that from experience, I do find that DIY or low skilled produced portfolios tend to overstate the risk position and pick from above the risk profile. Not so much after a crash but a few years later. I think confidence and short memory come in to play there. Downside protection tends to go away and that shouldn't be forgotten.

EdInvestor

Geo

I understand what you mean with regards the regular savings amount of £2k per month not being a great amount.

Do you? I don't.

But I will also be investing around an additional £25- 30k+ in lump sums a year between my wife and myself.This would mean a total in excess of around £50k+ a year.I have also already consolidated and transferred £150k into my account from existing investments. So he is also get % of these funds as well.

IMHO this guy is a having a larf.

So I would think that I should get a better service than what it seems I am getting.

Exactly so. You'tre not located in Scotland by any chance, are you?